The control over the money laundry. The new legislation in Poland will help to counteract the money laundry process
On the 21-st of April 2009 the Public Finances Commission have accepted the government project which will change the existing legislation and allow to control the money being introduce to the market from illegal or unknown sources and also to counteract the sponsorship of the terrorism. There is a big chance that the new legislation will come into force by the end of this year. For this to happened few other laws need to be modified as well.
The new regulations are the result of the two European Union Instructions (2005/60/WE and 2006/70/WE) which needed to be accepted by all members. The deadline for Poland has expired more than two years ago.
The new legislation makes more entities responsible for counteraction against money laundry. To this moment responsible for counteraction were: banks, electronic money institutions, investments companies, lottery games, bids, machine games and low prize machine games, insurance companies, investment founds, building societies, notaries, advocates, counsellors, tax advisers, money exchange businesses and businesses such as: auction houses, leasing and factoring businesses, metal and stones buy and sell, commission shops, pawnbrokers, estate agencies and foundations. Theoretically a great majority of entities were obligated to react to every single suspicious transaction. But according to the General Inspector of Financial Information only 1244 out form 32 million transactions made over the sum of 15 thousands euro in 2007 seemed suspicious and were reported. What's more among all of the entities only banks were meeting the requirements but only formally, taking care about all the mandatory procedures
The new legislation will affect companies accepting cash for the goods over 15 thousands euro even when the transaction is made over more the one procedure.
What's more the new law not only obligates more entities to be responsible but also impose more obligations.
1. The obligation to register all transactions over 15 thousands euro and all transactions that might come from illegal or unknown sources or might have anything to do with the terrorism.
2. The obligation to use the precaution measures such as customer identification and verification of the data which will help to define the true beneficent, its objectives and economic relations, will help to monitor its economic affairs including the inspection of all the transactions.
3. The obligation to introduce the internal methods to counteract the money laundry.
4. The obligation to promptly report to the General Inspector of Financial Information any suspicious transaction. Not complying with that obligation may result in 3 years in prison.
In sum the new legislation means a kind of a revolution for Polish businesses. The new procedures, staff training and the accumulation of the customers and transactions data will be difficult and complicated. A majority will probably treat it as another, unnecessary and bureaucratic difficulty.
The new legislation need to be voted but it seemed that not a lot will change. We can say that the proposal will come into force by the end of this year.
Tomasz Antonowicz
The new legislation makes more entities responsible for counteraction against money laundry. To this moment responsible for counteraction were: banks, electronic money institutions, investments companies, lottery games, bids, machine games and low prize machine games, insurance companies, investment founds, building societies, notaries, advocates, counsellors, tax advisers, money exchange businesses and businesses such as: auction houses, leasing and factoring businesses, metal and stones buy and sell, commission shops, pawnbrokers, estate agencies and foundations. Theoretically a great majority of entities were obligated to react to every single suspicious transaction. But according to the General Inspector of Financial Information only 1244 out form 32 million transactions made over the sum of 15 thousands euro in 2007 seemed suspicious and were reported. What's more among all of the entities only banks were meeting the requirements but only formally, taking care about all the mandatory procedures
The new legislation will affect companies accepting cash for the goods over 15 thousands euro even when the transaction is made over more the one procedure.
What's more the new law not only obligates more entities to be responsible but also impose more obligations.
1. The obligation to register all transactions over 15 thousands euro and all transactions that might come from illegal or unknown sources or might have anything to do with the terrorism.
2. The obligation to use the precaution measures such as customer identification and verification of the data which will help to define the true beneficent, its objectives and economic relations, will help to monitor its economic affairs including the inspection of all the transactions.
3. The obligation to introduce the internal methods to counteract the money laundry.
4. The obligation to promptly report to the General Inspector of Financial Information any suspicious transaction. Not complying with that obligation may result in 3 years in prison.
In sum the new legislation means a kind of a revolution for Polish businesses. The new procedures, staff training and the accumulation of the customers and transactions data will be difficult and complicated. A majority will probably treat it as another, unnecessary and bureaucratic difficulty.
The new legislation need to be voted but it seemed that not a lot will change. We can say that the proposal will come into force by the end of this year.
Tomasz Antonowicz
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